Bonus Pool

The Bonus Pool is the mechanism used to fairly distribute $TRESR token.

Until all 12,000 keys are minted, only Treasure Key holders can participate in the Bonus Pool rewards by pulling on the levers listed below.

Once all keys are minted, the Bonus Pool will be opened to anyone wishing to stake TRESR, TRESR-AVAX-LP, or SMRTR-AVAX-LP. Keyholders will maintain a unique advantage in that the Bonus Pool is also weighted by a fourth lever: Cumulative Key Level.

Levers control the percentages that each token or key level contributes toward the total Bonus pool rewards earned. Over time, these levers will be adjusted based on the needs of the protocol.

For ~1 year, the rewards paid to the Bonus Pool will be newly minted $TRESR. (remember: for the 1st year, the Key Rewards Pool and Bonus Pool rewards are newly minted by the NFTreasury)

After ~1 year, these minted emissions will end. Rewards will then be paid out via the Rewards Loop. This loop uses protocol fees and service commissions to purchase the $TRESR that is rewarded to the Bonus Pool (see Rewards Loop diagram)

Hint: The Bonus Pool rewards in the future will fall or grow based on the success of the protocol and the total fees it brings in but for the first year, it is fully-funded by $TRESR minted by the NFTreasury. The Bonus Pool is a math game that fairly distributes protocol rewards.

The Treasure Key community may vote to adjust this structure for early payment or halting of minted emissions once protocol revenue exceeds expenses.

The Bonus Pool will slowly receive less and less minted $TRESR. As the marketplace and ancillary products and services become more and more successful, the Rewards Loop will become the primary source of Bonus Pool $TRESR.

After 12 months of gameplay, the Bonus Pool will be fed by a percentage of fees coming from marketplace transactions, e-commerce sales, new project mints, and agency services.

“But if the $TRESR money printer runs out of $TRESR when it hits its supply cap, how will the Bonus Pool continue to pay out $TRESR?”

Good question.

When the marketplace has seen enough success, the NFTreasury will be earning from the various fee structures it has in place.

Those fees will be collected in $AVAX, $USDC, and other relevant cryptocurrencies.

A percentage of those fees will be used to purchase $TRESR tokens off the open market. We will use a system that prevents front-running or market manipulation.

After the first 12 months of gameplay, this purchased $TRESR will then be burned or distributed to the Bonus Pool based on each wallet’s pool percentage.

This allows the NFTreasury to utilize the $TRESR token as a way to capture and map value from the protocol. It then fairly distributes it to its decentralized community.

Since the supply of $TRESR will be capped, the only place to purchase $TRESR will be from those already holding it. This creates buying pressure in the liquidity pool.

The better the protocol does, the more users it should get. 

The Bonus Pool consists of the following levers.

Each of these levers is part of the overall formula that determines your wallet’s percentage share of the Bonus Pool.

Each variable will be assigned a percentage allocation of the total Bonus Rewards pool. Participants will compete for a share of the rewards allocated to each variable.

Depending on how many players are taking different actions, the ROI on different variables will change. Actions that both you and other players take will impact your share of the Bonus Pool rewards.

When the Key Rewards Pool reaches its emissions limit or all $SMRTR has been burned, the $SMRTR/AVAX JLP will no longer be rewarded.

Long-term, Key Levels, TRESR-AVAX-LP, and veTRESR balance will have the largest allocations of the Bonus Pool.

The idea is to avoid a hostile takeover through large JLP purchases. Both veTRESR and Treasure Key Levels take time to achieve. A takeover would require Treasure Key holders (you) to unstake and sell to a hostile participant.

When a wallet suicide compounds, they are selling some of their $SMRTR and $TRESR tokens into the liquidity pool in order to buy $AVAX and form additional LP tokens.

This is incredibly harmful to the ecosystem and akin to stealing from other community members.

Those sold tokens can then be acquired by potentially hostile actors.

When $SMRTR/AVAX-LP stakers use their $TRESR rewards to single-side stake and earn veTRESR or provide $TRESR/AVAX-LP rather than selling half to suicide compound this risk is minimized.

The schedule below is an anticipated Bonus Pool allocation over 12 months. This may change with ample warning to adjust for healthy incentives. Major changes will be brought to a protocol vote.

One option you may be considering for gameplay would be to sell Bonus Pool emissions as they are earned.

Warning: The tokenomics are not written to reward this behavior long-term.

A suicide compounder or whale could sell a large position and reap a profit the first time they do this. But they lose something valuable when they unstake their $TRESR to dump on other community members.

When they sell their staked $TRESR, their veTRESR balance drops to zero. This significantly impacts the amount of $TRESR they’ll continue to earn from the Bonus Pool in the future.

Dumping staked $TRESR tokens simply means earning a smaller proportion of protocol rewards the next time. It's a strategy that becomes less lucrative with each attempt.

This short-term thinking doesn’t work out well over time given the tokenomics of the protocol.

The NFTREASURE community is learning to think like successful crypto project leads. Sustainability and ecosystem health are encouraged to be front of mind. This long-term thinking will play into how each behavior or lever is weighted in the future.

You can find how each lever is weighted within the Gameplay Dashboard tooltips.

It’s important to keep in mind that: these levers will change over time.

As time goes on, the weight at which each lever is valued shifts to incentivize different actions that are most beneficial for the protocol.

As a community-governed protocol, it’s important that we each discuss and debate strategies that account for these shifting levers.

Key Level may not hold the most weight in the short term but in the long term it will be weighted much more heavily.

Staking $SMRTR-AVAX-LP and $TRESR-AVAX-LP have higher incentives early on but will diminish in weight over time.

Why?

Because the Treasure Box Game is designed to get you to think like a successful crypto project lead.

Successful crypto project leads aren’t only concerned about short-term profits, they’re concerned about sustainability and growth over time.

That means that the math of the game (and your attention) must shift based on what needs to be incentivized in the protocol for continued growth.